CLSA Greater China High Dividend Equity Fund

Important Information

CLSA Greater China High Dividend Equity Fund (the “Sub-Fund”) is a sub-fund of CLSA Global Public Fund Series Open-ended Fund Company, which is a public open-ended fund company established under Hong Kong with variable capital with limited liability and segregated liability between sub-funds.

The Sub-Fund aims to achieve long-term capital appreciation by investing primarily in equities and equity-related securities of companies which are incorporated in, have their area of primary activities in or are related to the growth of Greater China economy (comprising Mainland China, Hong Kong and Macau), which is expected to result in a portfolio of investments with overall potential high dividend yield (i.e. expected overall portfolio dividend yield higher than the Greater China markets average).

Investors can obtain Prospectus and Product Key Facts statement of Sub-Fund from the office of CITIC Securities Asset Management (HK) Limited, 18/F, One Pacific Place, 88 Queensway, Hong Kong and can also download from website.

Since the Sub-Fund is newly set up, there is insufficient data to provide a useful indication of past performance. Historical performance is not indicative of future results, nor does it constitute a representation or guarantee as to future results or performance.

Risk Factors.

  1. General Investment risk
  • The Sub-Fund’s investment portfolio may fall in value due to any of the key risk factors below and therefore your investment in the Sub-Fund may suffer losses. There is no guarantee of repayment of principal.
  1. Equity market risk
  • The Sub-Fund’s investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer-specific factors.
  1. Concentration risk
  • The Sub-Fund’s investment are concentrated in Greater China. The value of the Sub-Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting this region. Also, the value of the Sub-Fund may be more volatile than that of a fund having a more diverse portfolio of investments.
  1. Risk of investing in Mainland China markets
  • Investing in emerging markets, such as Mainland China markets, involves increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility.
  • High market volatility and potential settlement difficulties in the Mainland China markets may also result in significant fluctuations in the prices of the securities traded on such markets and thereby may adversely affect the value of the Sub-Fund.
  • Stock exchanges in the Mainland China typically have the right to suspend or limit trading in any security traded on the relevant exchange. The government or the regulators may also implement policies that may affect the financial markets. All these may have a negative impact on the Sub-Fund.
  1. Risks associated with the Stock Connect
  • The relevant rules and regulations on the Stock Connect are subject to change which may have potential retrospective effect. The Stock Connect is subject to quota limitations. Where a suspension in the trading through the programme is effected, the Sub-Fund’s ability to invest in China A-shares or access the Mainland China market through the programme will be adversely affected. In such event, the Sub-Fund’s ability to achieve its investment objective could be negatively affected.
  1. Risks associated with investments made through QFI Regime
  • The Sub-Fund’s ability to make the relevant investments or to fully implement or pursue its investment objective and strategy is subject to the applicable laws, rules and regulations (including restrictions on investments and repatriation of principal and profits) in Mainland China, which are subject to change and such change may have potential retrospective effect.
  • The Sub-Fund may suffer substantial losses if the approval of the QFI status is being revoked/terminated or otherwise invalidated as the Sub-Fund may be prohibited from trading of relevant securities and repatriation of the Sub-Fund’s monies, or if any of the key operators or parties (including QFI custodian/brokers) is bankrupt/in default and/or is disqualified from performing its obligations (including execution or settlement of any transaction or transfer of monies or securities).
  1. Mainland China tax risk
  • There are risks and uncertainties associated with the current Mainland China tax laws, regulations and practice in respect of capital gains realised via Stock Connects or QFI Regime or access products on the Sub-Fund’s investments in Mainland China (which may have retrospective effect). Any increased tax liabilities on the Sub-Fund may adversely affect the Sub-Fund’s value.
  • Based on professional and independent tax advice, the Sub-Fund will not make tax provision for realised and unrealised capital gains on the Sub-Fund’s investments in Mainland China.
  • If it is subsequently determined that Mainland China tax is payable and that no Mainland China tax has been provisioned for, the net asset value of the Sub-Fund may fall significantly as the Sub-Fund will have to bear the tax liabilities.
  1. Risk relating to small-capitalisation / mid-capitalisation companies
  • The Sub-Fund may invest in the securities of small-capitalisation / mid-capitalisation companies. Investing in these securities may expose the Sub-Fund to risks such as greater market price volatility, less publicly available information, lower liquidity and greater vulnerability to fluctuations in the economic cycle than those of larger capitalisation companies in general. Their prices are also more volatile to adverse economic developments than those of larger capitalisation companies in general.
  1. Currency risk
  • The underlying investments of the Sub-Fund may be denominated in currencies other than the base currency of the Sub-Fund. Also, a class of shares of the Sub-Fund may be designated in a currency other than the base currency of the Sub-Fund. The net asset value of the Sub-Fund may be affected unfavourably by fluctuations in the exchange rates between these currencies and the base currency and by changes in exchange rate controls.
  1. Risk relating to hedging and the hedged class
  • There can be no assurance that any currency hedging strategy will fully and effectively eliminate the currency exposure of the Sub-Fund. Hedging strategies may preclude investors from benefiting from an increase in the value of the Sub-Fund’s base currency.
  1. RMB risk associated with RMB-denominated share classes
  • Investors may invest in RMB-denominated share classes of the Sub-Fund. Non-RMB based investors are exposed to foreign exchange risk and there is no guarantee that the value of RMB against the investors’ base currencies (e.g. USD or HKD) will not depreciate. Any depreciation of RMB could adversely affect the value of investor’s investment in the RMB-denominated share classes of the Sub-Fund.
  • Share classes denominated in RMB will generally be valued with reference to the offshore RMB (CNH) rather than onshore RMB (CNY). Although CNH and CNY are the same currency, they are traded in different and separate markets which operate independently. As such, CNH does not necessarily have the same exchange rate and may not move in the same direction as CNY. Any divergence between CNH and CNY may adversely impact investors.
  • RMB is currently not freely convertible and is subject to exchange controls and restrictions. Under exceptional circumstances, payment of redemptions and/or dividend payment in RMB may be delayed due to the exchange controls and restrictions applicable to RMB.
  1. Risks associated with distribution of dividends out of and/or effectively out of capital
  • Payment of dividends out of capital and/or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investments. Any such distributions may result in an immediate reduction of the net asset value per share.
  • The distribution amount and net asset value of the hedged share class may be adversely affected by differences in the interest rates of the reference currency of the hedged share class and the Sub-Fund’s base currency, resulting in an increase in the amount of distribution that is paid out of capital and hence a greater erosion of capital than other non-hedged share classes.

 

Overview

CLSA Greater China High Dividend Equity Fund (the “Sub-Fund”) is a sub-fund of CLSA Global Public Fund Series Open-ended Fund Company, which is a public open-ended fund company established under Hong Kong with variable capital with limited liability and segregated liability between sub-funds.

 

Manager:

CITIC Securities Asset Management (HK) Limited

Fund Information

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Documents

KFS

Product Key Facts Statement (Chi)

Download

Product Key Facts Statement (Eng)

Download

Prospectus

Prospectus(Eng)

Download

Prospectus(Chi)

Download

Climate Disclosure

CLSAAM - Climate Risk Disclosure

Download

Contact

CLSA is headquartered in Hong Kong and represented across Asia, Australia, Europe and the Americas.

To submit a general enquiry, please email to investorservice@clsa.com.

To contact CITIC Securities Asset Management (HK) Limited Office, Please refer the office location: 18/F, One Pacific Place, 88 Queensway, Hong Kong

Investment involves risk and you may not get back the amount originally invested. Past performance is not indicative of future performance. You should not make any investment decision solely based on this website and should read the relevant offering documents for details including the risk factors before making any investment decisions. If investment returns are not denominated in HKD/ USD, US/HK dollar-based investors are exposed to exchange rate fluctuations. You should ensure you fully understand the risks associated with the investment and should also consider your own investment objective and risk tolerance level. If in doubt, please seek independent financial professional advice.

This website is intended for Hong Kong residents only. Non-Hong Kong residents are responsible for observing all applicable laws and regulations of their relevant jurisdictions before proceeding to access the information contained herein.

SFC authorization is not a recommendation or endorsement of the Fund or its sub-funds, nor does it guarantee the commercial merits of the Fund or any of its sub-funds, or their performance. This does not mean the Fund or its sub-funds are suitable for all investors, nor is it an endorsement of their suitability for any particular investor or class of investors.

This website has not been reviewed by the Securities and Futures Commission of Hong Kong.